For years, the PGA Tour enjoyed a virtual monopoly over professional golf. The minor tours system was developed over the past 20 years are basically feeder tours for the big leagues. This business model is nothing new and virtually every sport has a similar system. This process was fantastic for the PGA Tour coffers, but that is now being challenged by the LIV professional golf tour. The rumours of Jon Rahm heading to LIV, for 600 million dollars US, has sparked more debate about the ability of the PGA Tour to continue its dominance at the top of professional golf.
Depending on which side of the fence you sit, LIV is either a saviour or destroyer of professional golf. Ultimately, it is not about golf it is about money and the golf industry. It has always been this way, however the quick appearance of LIV golf at the top of the leaderboard has caused many professional pundits (and amateurs) to question what the heck is happening. You know that it must be something since the DP Tour and PGA Tours have decided to join forces to combat the new upstart!
“In June 2022, the PGA Tour and DP World Tour announced a 13-year pact to strengthen each tour against the threat of LIV Golf. As part of the venture, the top 10 players (not already exempt) on the DP World Tour’s Race to Dubai list will earn PGA Tour membership for the following season. ” (Golf Digest) This as well as a strategic alliance announce between the two tours in 2021 is an indication that the LIV Tour might be a bit more of nuisance than espouses not to many years ago.
The breaking of the golf monopoly is always an alarming thing. It encouraged the PGA Tour to make changes to the payout of prizes, how the tour was run, and how the elite players are treated. The changes to the structure of control is evident in many areas. All of these changes were not conducted for the sake of the game, it was driven by economics!
I am not an economics expert, however I do not believe anyone needs to be considering the amount of money at stake here. In 2021 – 2022 season, the PGA Tour and DP Tour generated over 2 billion dollars in revenue. LIV has generated no revenue (according to their documents), however that is not the real story. Yahoo sports article has the value of the PGA Tours and the DP Tour at over 10 billion dollars (US). Now, that is a great deal of money, but it is not as simple as pure evaluation. (Yahoo Sports)
If anyone things all the battling, yelling, and finger pointing at the top of professional golf is all about the love of the game……I think it is time to take another look. Yes, as an amateur I enjoy watching the amazing shots by professional golfers. I love the fact that many charities benefit for professional golf. I am grateful when professional golfers reach out to the communities they visit.
There are many benefits to professional golf, however, let us not be fooled; “The game of golf drove $101.7 billion in economic activity throughout the U.S. in 2022, an increase of 20% over its $84.1 billion impact in 2016.” (American Golf Industry Coalition report) Golf is big money and it all starts at the top with professional golf.
Personally, I am not fussed what is happening at the top of professional golf. I am small cog in a vast machine designed to make tremendous amount of money. I am not naive to think that professional golf is not a driving force that trickles down to my local area, but I am also not blind to the fact that the battle the highest levels of golf is nothing more than economics. For now, I take no sides. All I want to do is relax, have a coffee and watch the final round of the Hero World Challenge.
I am a grateful golfer! See you on the links!
I’d put it as the opposite. Rahm is losing his relevance if he leaves the PGA tour. As least in the golf world. Just like the rest of the LIV golfers who left the tour.
They don’t get or deserve the same respect as a tour player. But they do get a nice fat wallet.
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Kevin,
An interesting take. It will be interesting to see how all of this unfolds. The reason they do not have relevance is because the entire professional golf industry was focused on the PGA Tour. Not sure that is a good enough reason to make top golfers irrelevant.
Cheers Jim
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Actually, I’m not all that interested in how the PGA / LIV deal comes out in the end.
On reflection, I’m not so sure Rahm would leave the Tour totally. It could be his consideration is done with insider knowledge we don’t yet have.
But I would submit the size of field difference alone make the PGA tour the tougher of the two. And LIV just doesn’t offer the same scale of challenge.
And to me the makes LIV second fiddle. Might as well be YouTube golf.
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Great points Kevin! It is a challenge to watch mediocre golf on TV. I would rather be doing something else.
Cheers Jim
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